The continued Brexit crisis affects the Forex market and saw the British Pound emerge as the biggest loser last week.
GBP Suffers From Brexit Uncertainty
The Pound was the biggest loser last week as the odds of a no-deal Brexit rose. The GBP suffered even though the first set of Coronavirus vaccine were dispatched in the country. The GBP lost massively against the other major currencies, including the USD, JPY, EUR, CAD, and others.
Against the greenback, the sterling lost 1.39% of its value last week, with the GBP/USD pair ending the week trading at 1.322. The GBP/EUR pair also declined by 1.25% last week, ending the week at 1.09.
The greenback also lost against leading currencies like the JPY, CAD, NZD, and AUD. It only gained against the GBP and EUR.
ForexSignal Trade of the Week
Our ForexSignal Trading Team identified a strong selling opportunity for the USDCAD on December 10th to sell at the price of 1.2788, and this trade achieved all 3 of our Targets with a maximum move of 82 pips. See more trades like this.
Upcoming market events
UK Employment Report: Tuesday
Wage growth in the UK has been steadily improving after gaining 1.3% in September. The growth is expected to continue in October and should reach 2.2%. Claimant Count declined by 29.8 thousand in October, but analysts expect it to rise by 10.5 thousand in November. The unemployment rate in the UK is expected to rise to 5.2%, up from 4.8%.
UK inflation Report: Wednesday
Inflation has been growing and hit 0.7% in October. It is expected to drop to 0.6% in November. The core reading should be around 1.4%, which is similar to the 1.5% recorded the last time.
FOMC Meeting: Wednesday
The Federal Reserve is set to keep a low profile for the final policy meeting of 2020. The Fed is expected to keep the interest rate at its current levels, around 0.25%. Investors will watch out for rate statement, which could provide further insights into the Fed’s view of the United States economy.
Eurozone Inflation Report: Thursday
Deflation remains a key problem for Eurozone policymakers. Headline inflation in the region declined by 0.3% for two consecutive months, and the same projection is on the cards for November. Core inflation is positive and is expected to record a gain of 0.2% for the third consecutive month.
BoE Rate Decision: Thursday
The Bank of England’s last policy meeting of 2020 could be a quiet one. Policymakers in the UK are set to maintain the Official Bank Rate at 0.10% and keep the current level of QE at GBP895 billion.
Canada ADP Non-Farm Employment Change: Thursday
Canada’s labor market is recovering from the pandemic and has been posting strong gains in recent months. However, the ADP report has been declining for the past three reports. Will the November ADP report moves to the positive side, or will we see a fourth consecutive loss?